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HomeMy WebLinkAbout2014-10-28 - AGENDA REPORTS - SCV AUTO SHOP LOCAL PGM (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT Agenda Item: 7 CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presented by: October 28, 2014 Jason Crawford SANTA CLARITA VALLEY AUTOMOBILE DEALERS ASSOCIATION "SHOP LOCAL" PROGRAM Community Development RECOMMENDED ACTION City Council approve $60,000 for a public/private partnership with the Santa Clarita Automobile Dealers Association for continuing the "Shop Local" program for fiscal year 2014/2015, per the attached Letter of Agreement; authorize the City Manager to execute up to four annual renewal options, not to exceed the annual amount, and contingent upon the appropriation of funds by the City Council in the annual budget for such fiscal year; and execute all documents, subject to City Attorney approval. BACKGROUND Auto sales are a significant economic force for the City. In calendar year 2013, new motor vehicle sales represented 17.1 % of the City's annual sales tax revenue, for a total of $4,963,978. The City Council approved a $60,000 contribution to the public/private partnership with the Santa Clarita Automobile Dealers Association in fiscal year 2004/2005 to coincide with the Shop Local campaign. Due to the success of the partnership, subsequent contributions have continued annually to the present at the $60,000 amount. The Shop Local program targets local residents and is based on an ad campaign that shows the benefits residents receive as a result of making a local purchase. Additionally, sales tax revenues generated locally are reinvested back into the community in the form of increased public improvements and services. ALTERNATIVE ACTIONS Other action as determined by the City Council. FISCAL IMPACT As proposed, this Shop Local program will have a positive fiscal impact to the City by increasing overall auto sales and subsequent tax revenues to the City. Funds for this expenditure are budgeted in account number 11301-5161.002 for fiscal year 2014/15. ATTACHMENTS Letter of Agreement 2 October 28, 2014 Santa Clarita Valley Automobile Dealers Association 23955 Creekside Road Santa Clarita, CA 91355 Letter of Agreement Contract Number The City of Santa Clarita ("City") would like to enter into a Letter of Agreement ("Agreement") with the Santa Clarita Valley Automobile Dealers Association ("Association") for the annual Shop Local advertising partnership. 1. Scope of Work The Association will produce an annual Shop Local advertising campaign. 2. Compensation The City agrees to compensate Association sixty thousand dollars ($60,000.00) towards the advertisement costs. 3. Time Schedule Services to be provided in fiscal year 2014/2015. 4. Report Association to itemize how the money was spent in furtherance of the Shop Local campaign. City shall have the right to request such itemized report at its discretion. 5. Renewal May be extended up to four annual renewals at City Manager's discretion, subject to annual budget allocations by the City Council. Witness the execution of this Agreement on the day and year first written above. For Association: Ll Print Name & Title Date Address City, State, Zip Code Phone Number For City: By for City Manager Date Attest City Clerk Date Approved as to form: Burke, Williams & Sorensen By Date